The sun. [volume] (New York [N.Y.]) 1833-1916, 1887-11-13
Cooperation in the United states.

Cooperation in the United States.
We make to-day very important contri-
button TO the discussion Of the practicability
Of the cooperative system as applied to this
country. It consists In carefully gathered
and uncolored reports Of the actual working
Of cooperative enterprises in sixteen cities In
different parts Of the Union.
These reports show that whatever its sue
cess In England, the results OF the expert
ment have, on the whole, been very unaatis-
factorS In the United States. Lack Of busi-
ness skill and Judgment, contentious among
managers, and inability to compete with the
regular trade have been the causes Of tho
failure Of most Of tho undertakings. In the
cases, too, where the enterprises have been
succeesful, like disaster was often only pre-
vented by substantially changing them Into
private or joint-stock concerns doing busi-
ness after the ordinary methods. In Newark,
for instance ono OF the earliest efforts at
cooperation was tho establishment OF COOP
erattve brewery by twelve German workmen;
but when 1t proved successful they quarrelled
among themselves, and the result was that
they sold out their shares to one Of their
number. who has grown rich by running the
brewery as his private enterprise. Attempts
at the cooperative manufacture Of saddlers'
tools, Of shoes, and Of harness resulted In
about the same way. As they became pros
porous they were turned into private or joint
stock concerns, In which there was scarcely
vestige Of the cooperative principle on
which they were founded.
This, Of course, is one Of the greatest dan
gers to which the system is exposed In its
practical application. The mon most COM
petent to run the enterprises begin to get
tired Of tho cooperative council, which ham
pers them in the execution OF their plans,
quarrels ensue, and the sole control passes
into their hands, 90 that eventually the busi-
ness becomes theirs exclusively. It is sim
ply another example Of the superior propel-
ling power Of selfish interest, as compared
with desire for the common good.
Such instances Of It's perversion seem only
to have occurred when the cooperative sys-
tenn has been applied to production, an ap-
plicaIion which, 80 far. has hardly been moro
successful in England than in this country.
The experiment OF the cooperative store for
the sale Of goods has worked somewhat bot
ter with US. though only in comparatively
few cases, and nowhere with anything ap-
preaching what is represented as the English
experience. Here in New York it has been
q pretty complete failure from the first, and
in Brooklyn, Newark, Pittsburgh, Cleveland,
and Boston the results have not been more
satisfactory. The reports from Buffalo,
Trenton, and Milwaukee are more encour-
aging. though in none Of the sixteen cities
covered by our investigation has anything
rivalllng the success Of the cooperative
stores Of England been achieved. At best
they have only been successful In comparl-
son with the common failure.
One great, II not the chief obstacle to tho
success of the cooperative store in this coun-
try Is the small percentage Of profit at which
private dealers. and especially the large
shops, sell their goods, and the ability their
greater cash capital gives them of obtaining
goods cheaper. The cooperative store start
be remembered. went into bankruptcy be-
cause 1t could not begin to compete with pri-
vate concerns in the same business. With
insufficient capital and doubtful credit, It
was obliged to pay more for articles than the
prices at which tho others could afford to
sell them.
In country where the retail business Is
conducted on the cash system. as it is so gen.
orally here, and where the margin of profit
can therefore be kept low. there does not
seem to be much chance for the cooperative
store, especially as sharp competition also
tends to 30 cheaper prices as to prevent any
concern from becoming largely, or even con-
siderably profitable unless its trade is very
great,